What is basic is that you should always save in the currency in which you will spend more, because everything else would be an additional cost.
The crisis due to the corona virus has shaken the world economy, which is why citizens are increasingly in a dilemma in which currency is best to keep money, which is the safest and whether it is good to buy dollars, euros or other foreign currencies at this moment.
As confirmed by the National Bank of Serbia, the corona crisis has affected world currencies, but it is expected that in the second half of this year the situation will return to normal, but under the condition that the pandemic is brought under control.
According to economic experts, expectations are that the euro would strengthen against the US dollar this year, while at the same time gold, but also certain currencies such as the Japanese yen, are often considered safe options.
The National Bank of Serbia says that the current situation in the world, compared to the beginning of 2020 and the appearance of the virus, is to a certain extent more certain due to the distribution of vaccines, which currently plays a key role in global recovery.
– The return of global GDP to the pre-crisis level is expected by the end of this year, and a more dynamic recovery of economic activity is expected from the second quarter of the year. However, it should be borne in mind that certain risks, primarily related to the distribution of vaccines, the efficacy of vaccines and the emergence of new strains of the virus, still exist. In that sense, it can be expected that investors will keep a dose of caution in the next period as well – they say from this institution.
During crisis and uncertain periods, the so-called “safe haven currency”, such as the Swiss franc and the Japanese yen, say the National Bank.
– When an individual makes a decision in which currency to save, he should take into account his needs and accompanying risks. While it would be appropriate for a large pension fund to invest in, for example, the Swiss franc, even at a negative interest rate, primarily because of regulations that usually impose an “safe asset” investment on these investors, it may not be financially viable for an individual saver decision – say from the National Bank.
They remind that the National Bank of Serbia does not give recommendations on currencies in which to save, because such a decision depends on the personal preferences of each individual, but they confirm that in the last eight years saving in local currency is more profitable than saving in euros, which makes up most foreign currency savings.
On the other hand, Serbian economists say that this year the European economy is expected to grow and that the euro will strengthen against the dollar by 1.3 percent. From that point of view, it would be best to invest in the euro at least in one part of the savings.
– The US dollar is the main reserve currency in the world and is suitable for those who receive income in this currency in order to save. Many believe that the American economy is like a bubble that can easily burst and that is why saving in dollars is always risky, but it is unlikely that the United States will lose its economic position. On the other hand, the euro is expected to grow faster than the US currency. The euro has taken its place in gold and foreign exchange reserves, so it is often recommended to transfer savings in euros with the use of short-term deposits – says economist Vladan Vukovic.
It is possible to use popular and reliable foreign currencies in case there is a need for long-term storage of funds.
– You should choose a foreign currency taking into account the situation in the global market, as well as in the countries where these currencies are issued. As it is predicted for now, the Russian ruble could strengthen, but only under the condition that the sanctions of the European Union weaken, but also that the price of oil is appropriate. Although few people in Serbia think about it due to various complications, the yen and the yuan can be a good choice for saving – says economist Vladan Vukovic.
However, what is basic is that you should always save in the currency in which you will spend more, because everything else would be an additional cost.
– We usually talk about the national currency here. If you plan to buy something for dinars from savings, there is no reason to convert dinars into euros and save them in euros, and to turn everything back into dinars after withdrawing money. So you will spend more money on conversion than you will earn from interest rates. If the owner of the money does not intend to use the savings for a large purchase of real estate or a car, then it can turn into gold – says the interlocutor.
Gold is used as a definitive standard, has constant liquidity and guarantees for many years that it will not lose its value, Srbija Danas reports.
